Small business: Merchant accounts?
April 8, 2013 6:59 PM Subscribe
I am taking over a small business by cutting out the middle man. I need set up the merchant account and there are so many options that have nothing in common I need guidance in what to look for or suggestions of good ones.
I realize it seems very easy at first. Just go to PayPal but they seem to be the worst option.
When I started researching immediately it seemed there are tons of variables in each option. I do know that I want to do an online merchant Since I have no knowledge of this area I thought I would turn to The Hive mind to get some input. I am an educational llc so I will use it for my students taking my classes.
Thank you so much for any input. I always get great ideas and answers!
**
I realize it seems very easy at first. Just go to PayPal but they seem to be the worst option.
When I started researching immediately it seemed there are tons of variables in each option. I do know that I want to do an online merchant Since I have no knowledge of this area I thought I would turn to The Hive mind to get some input. I am an educational llc so I will use it for my students taking my classes.
Thank you so much for any input. I always get great ideas and answers!
**
What do you need out of a merchant account? Are you going to do just in-person card processing, in-person and online, or all online?
If you're processing cards online, do you have an existing payment processor? If not, how do you plan to integrate payments with your web site? For example, do you already have an e-commerce platform that supports various payment providers, or do you just want to add a "pay me" link that takes your customers to another web site like PayPal Express? (There are other options, too.)
There are similar questions for in-person (card present or swipe) processing, but I'm not very familiar with them.
Another option you might consider is accepting e-checks through something like Intuit Payment Network. I've just set this up for a client and it's a very bare-bones solution (very few options), but the fees are great — 50¢ to accept an e-check (the credit card fees, on the other hand, are worse than PayPal). For the right kinds of customers, that might make sense.
posted by danielparks at 7:47 PM on April 8, 2013
If you're processing cards online, do you have an existing payment processor? If not, how do you plan to integrate payments with your web site? For example, do you already have an e-commerce platform that supports various payment providers, or do you just want to add a "pay me" link that takes your customers to another web site like PayPal Express? (There are other options, too.)
There are similar questions for in-person (card present or swipe) processing, but I'm not very familiar with them.
Another option you might consider is accepting e-checks through something like Intuit Payment Network. I've just set this up for a client and it's a very bare-bones solution (very few options), but the fees are great — 50¢ to accept an e-check (the credit card fees, on the other hand, are worse than PayPal). For the right kinds of customers, that might make sense.
posted by danielparks at 7:47 PM on April 8, 2013
Groupon recently started offering processing and it's actually been great. Really low fees and it does what I need it to. I looked into (and have used a number of) all sorts of other options and nothing really came close for how cheaply I could get processing through them.
Def avoid doing it with your bank, they charge tons more than even the traditional outside processors like Nova or X-Charge. PayPal is even worse.
posted by teishu at 8:03 PM on April 8, 2013
Def avoid doing it with your bank, they charge tons more than even the traditional outside processors like Nova or X-Charge. PayPal is even worse.
posted by teishu at 8:03 PM on April 8, 2013
Response by poster: I am having students fill out registrations forms and many pay for courses with credit. I do have a business bank account with my Tax ID.I will take these registrations, go home and type everything in. It isnt feasible to do cc payments during registration because it isn't formal desk/classroom. No reoccurring charges. I dont have a payment processor, I guess I should go to my bank and find out, I was hoping to just type it into because it is a filed registration that I take all info so I know it is correct and then hope to type it in a website and then the money goes in my business account along with depositing checks. I guess then my business bank is the est jumping off point. I just dont know if what they offer will be "good" since I will have no comparison of the variables.
posted by femmme at 8:10 PM on April 8, 2013
posted by femmme at 8:10 PM on April 8, 2013
Here's what I do for my consulting business:
- I use e-Junkie as a very inexpensive shopping cart. In e-Junkie, I create "products" that represent my various consulting packages (e.g. 3 hours for $X). Each product has a unique link for payment.
- I use Authorize.net with Moneris as my merchant account. Dharma Merchant Services set me up painlessly.
- I email the appropriate product link to the client, and they click the link to pay with their credit card. E-Junkie talks to Authorize.net, who does their thing and passes it along to Moneris.
- I get an email when they've paid, and the money automatically makes its way into my business bank account.
I could also manually open the "virtual terminal" page at www.authorize.net and take the credit card info from the client on the phone, but it's easier for everyone to just send them a link that they can use when they have a chance. Authorize.net also has a mobile app to accept credit cards on the go.
posted by ceiba at 8:54 PM on April 8, 2013
- I use e-Junkie as a very inexpensive shopping cart. In e-Junkie, I create "products" that represent my various consulting packages (e.g. 3 hours for $X). Each product has a unique link for payment.
- I use Authorize.net with Moneris as my merchant account. Dharma Merchant Services set me up painlessly.
- I email the appropriate product link to the client, and they click the link to pay with their credit card. E-Junkie talks to Authorize.net, who does their thing and passes it along to Moneris.
- I get an email when they've paid, and the money automatically makes its way into my business bank account.
I could also manually open the "virtual terminal" page at www.authorize.net and take the credit card info from the client on the phone, but it's easier for everyone to just send them a link that they can use when they have a chance. Authorize.net also has a mobile app to accept credit cards on the go.
posted by ceiba at 8:54 PM on April 8, 2013
Square is pretty awesome. Can take credit card payments with your iPhone/iPad or some Android devices. Rates and fees are better than most banks, too.
posted by xedrik at 12:00 AM on April 9, 2013
posted by xedrik at 12:00 AM on April 9, 2013
I'd guess your best options will be Square or Intuit merchant services, both of which have options that don't have lasting contracts or monthly payments.
posted by grudgebgon at 7:24 PM on April 9, 2013
posted by grudgebgon at 7:24 PM on April 9, 2013
YMMV, but Square's rates weren't better than any bank as of 2011 anyway. Make sure to check.
posted by yerfatma at 8:06 PM on April 9, 2013
posted by yerfatma at 8:06 PM on April 9, 2013
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What will your average customer charge be? Will there be recurring charges?
posted by yerfatma at 7:14 PM on April 8, 2013